Sunday, April 26, 2009

OPEC chief says oil prices are too low

The price of oil seems good to me as a consumer, but I understand why OPEC wants to increase the price as soon as possible. From an investment standpoint we only have a limited source of oil in the world and although we don't know exactly when our supply will be depleted, getting the most out of what do have is important moving forward. Working on reducing our dependence on oil should be a key initiative involved with the car companies that we are helping restructure because not only from a safety benefit, but also from an environmental aspect we can be doing good things for the country. It is going to take a lot of time to accomplish this goal, but in the mean time we can still continue to reduce our use of oil by limiting the amount of time we spend driving and by capitalizing on the public transportation systems that we have in place. I like President Obama's commitment to improving the infrastructure and light rail systems around the country because I have been able to see the benefits firsthand. Living here in D.C. has given me a whole new perspective on public transportation and it is much more convenient and less stressful than driving on the road.

1 comment:

Charlie Ruff said...

Most of the OPEC companies are in serious budget trouble right now. Their budgets rely on oil prices remaining well above $50. In addition, most of these nations have seen they're sovereign wealth funds wiped out by the financial crisis.

These countries are struggling to raise revenues. If the recession drags on and oil prices remain low, OPEC might encounter the problems it saw in the 90s when member countries did not adhere to their quotas.